DGAP-News: JDC Group AG / Key word(s): Miscellaneous
2016-05-25 / 07:00
The issuer is solely responsible for the content of this announcement.
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JDC Group acquires insurance portfolio of up to 195,000 customers and thus
boosts EBITDA by up to Euro 4 million a year
- Jung, DMS & Cie. AG, a subsidiary of JDC Group AG, invests in an asset
deal with a medium-sized broker a small double-digit million euro
amount
- Commission income set to rise by up to Euro 5 million a year
- EBITDA growth of up to 4 million Euro a year following portfolio
transfer
- Great cross-selling potential mainly due to the new digital finance
assistant "allesmeins" within the customer portfolio acquired
Jung, DMS & Cie. AG, a subsidiary of JDC Group and one of Europe's largest
broker pools, has agreed an asset deal to acquire a private customer
insurance portfolio of up to 195,000 customers, a net annual premium of
almost Euro 27 million, annual commission income of up to Euro 5 million
and an expected EBITDA contribution after handling and customer support
costs of up to Euro 4 million.
The customer contracts are mainly in the field of legal protection
insurance, personal liability insurance, household and household contents
insurance. The asset deal agreement is subject to various conditions
precedent. It should be completed by the middle of the year. As a result,
the impact on revenues and EBITDA outlined above will take effect on a pro-
rated basis in the current year.
The transaction will be financed with the Euro 15 million bond placed
successfully in June 2015 and issued in order to acquire broker portfolios.
Upon implementation of the latest transaction, this capital will be fully
invested. Over and above the immediate positive impact on revenues and
EBITDA, the management of JDC Group also expects to generate substantial
additional revenues by deploying its newly introduced "allesmeins"
insurance wallet in the newly acquired customer portfolio. As the average
contract density in the acquired portfolio currently amounts to just over
one contract per customer, compared with a German average of around eight
contracts per customer, this innovative smartphone application should
enable the contract density per customer to be significantly raised in the
new portfolio. This in turn could lead to even more positive earnings
contributions from the portfolio acquired.
"allesmeins" is a digital insurance wallet based on state-of-the-art
technology that unites the interests both of end customers and of their
Independent Financial Advisors (IFAs). It provides end customers with a
rapid overview of all their insurance contracts and relevant contract
documentation on their smartphones or tablets. The app also enables
customers to add contracts, optimize them or report damages. However,
unlike normal, non-personalized fintech solutions, "allesmeins" still
offers end customers access to their individual financial advisors, with
whom they have built up a relationship of trust over years or even decades
in some cases, and to all of their specialist competence. If they wish, the
195,000 customers in the portfolio acquired will thus have access in future
to one of JDC's IFAs.
"JDC Group is the ideal buyer for this kind of broker portfolios. That's
not only because we have extensive transaction experience but also because
once the transfer has been completed we can also ensure in the interest of
the retail customers that they receive suitable support, particularly
should any insurance events arise", comments JDC's CEO Dr. Sebastian
Grabmaier. "JDC Group is one of only few market players to combine the
latest and most efficient transaction services and state-of-the-art
advisortech solutions with the most important component - the human factor.
Not least by deploying our 'allesmeins' smartphone application, we will
ensure ideal customer retention and create additional revenue potential for
our IFAs and hence for ourselves."
"The portfolio now acquired will substantially improve our key financials.
The contracts are predominantly in insurance segments with above-average
duration periods and high commission expectations", adds Ralph Konrad, CFO
of JDC Group. "We are delighted that this transaction also enables us to
confirm the forecasts provided in the business plan when placing the bond
last year. With a return on revenues of more than 50 percent on the
portfolio acquired and a return on investment of up to 30 percent we are
absolutely on target and are able to demonstrate the great success of our
'portfolio acquisition' business model. We plan to acquire more insurance
portfolios shortly."
About JDC Group AG
JDC Group AG (ISIN: DE000A0B9N37) stands for smart financial distribution
flanked by new advisory technologies in the age of the digital natives.
In our "Advisory" segment, our Jung, DMS & Cie. and FiNUM subsidiaries
broker financial products to private customers via independent advisors,
brokers and financial sales operations. With more than 16,000 affiliated
sales partners, more than 900,000 end customers, a managed portfolio of
more than Euro 4 billion and new business of more than Euro 1.3 billion a
year, we are one of the market leaders in German-speaking countries.
In our "Advisortech" segment, we are developing state-of-the-art advisory
and administration technologies for customers and advisors alike. Many
competitors of JDC view technological change as presenting a problem and
see young fintech players as new rivals. We, by contrast, see the
"technology" factor as offering a great opportunity. In future, solutions
from the "Advisortech" segment will help our advisors support their
customers even more closely and thus also generate higher sales.
Disclaimer:
Members of the Management Board of JDC Group AG hold material shareholdings
in JDC Group AG and thus have proprietary interests in the nature and
contents of the information provided in this notification.
Detailed information regarding the company and its daughters can be found
under www.jdcgroup.de.
Information regarding the new Finance-App can be found under
www.allesmeins.de.
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2016-05-25 Dissemination of a Corporate News, transmitted by DGAP - a
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